How MagicOrange Changed The Game At SPAR
Video Synopsis
How MagicOrange Changed The Game At SPAR
Providing an Effective IT Financial Management Solution
MagicOrange is an IT financial management service organization founded in 2015. The organization is built on the Microsoft platform, utilizing the latest cutting-edge features on the MagicOrange platform. Having a strong relationship with Microsoft has been a game changer in how MagicOrange provides services to its customers.
We started out looking for a solution for cost management. We needed to understand our costs in detail and recover them on an equitable basis from various divisions. After evaluating options, MagicOrange quickly stood out as the ideal fit for what we were looking for.
Both Microsoft and MagicOrange are members of the FinOps Foundation. At SPAR, we wanted to ensure we used a solution that delivered a strong return on investment for their cloud bill. Using the FinOps framework, we discovered that SPAR’s reserved instance coverage was only 12%. Through our research, we were able to increase that coverage to 30%, resulting in 80% savings for SPAR. By leveraging this framework, both Microsoft and MagicOrange were able to deliver a significant ROI using the MagicOrange.
We implemented four main financial models for SPAR: the VPN actuals, the VPN current recoveries, the Azure cloud model, and the actuals versus budget model. Each of these models provided SPAR with greater precision and transparency in their cost management. With MagicOrange Prism, SPAR gained a single source of truth for their financial data.
Cloud Native Platform on Azure
Microsoft Azure offers some of the highest international security standards available, which was crucial for our organization, especially since we work with financial service companies where security is key. Having Microsoft Azure as the platform to develop the MagicOrange solution ensured we had access to these top-tier security features.
Effective Cost Modeling
The financial models we developed brought us the accuracy we needed, which is our top priority. From accuracy comes confidence in the numbers, enabling us to drill down into the details of our costs and identify areas for cost reduction or management. Each resource within Azure is tagged when used, and in order to allocate those costs correctly, each resource must be tagged to the specific country using it. We helped SPAR identify inaccuracies in tagging so they could fix them and properly allocate their costs.
The relationship with MagicOrange has brought immense value to the business. We are now able to manage performance against the budget, identify gaps to focus on, utilize resources more efficiently, and make more informed business decisions. Ultimately, these improvements have contributed to increasing profitability, which is the ultimate goal in retail.
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